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Food Prices Soar in Afghanistan Despite Stronger Currency, Straining Households

Despite the afghani strengthening against the US dollar for nearly seven months, prices for essential food items like flour, rice, and cooking oil have sharply increased in Afghanistan. The rising costs are severely impacting households, with residents reporting a drastic reduction in purchasing power and an inability to afford basics. While the central bank credits prudent monetary policy for currency stability, the Chamber of Commerce notes price hikes stem from factors beyond just exchange rates. Ongoing import and transit constraints continue to weigh heavily on vulnerable, wage-dependent families, making daily survival increasingly difficult.

Key Points: Afghanistan Food Prices Rise Despite Falling Dollar Exchange Rate

  • Food prices defy currency strength
  • Essentials like flour and oil surge
  • Household purchasing power collapses
  • Central bank touts currency stability
  • Chamber of Commerce cites complex causes
2 min read

Afghanistan food prices soar despite falling dollar, straining import-dependent economy

Basic food costs surge in Afghanistan despite a stronger afghani, increasing pressure on import-dependent economy and low-income families.

Afghanistan food prices soar despite falling dollar, straining import-dependent economy
"Prices are very high, and poor people cannot afford them. A poor person cannot buy rice or cooking oil. - Raz Mohammad"

Kabul, February 6

Afghanistan's import-dependent economy is facing renewed strain as prices of basic food items continue to rise despite a sustained fall in the US dollar, according to Tolo News.

Although the dollar has weakened in domestic markets over the past nearly seven months and is currently trading at around 65 afghanis per dollar, essentials such as flour, rice, and cooking oil have recorded sharp increases, defying public expectations.

Citing data accessed by Tolo News, the report said prices of key commodities have climbed by between 100 afghanis and more than 1,000 afghanis, even as the exchange rate declined.

Haroon, a shopkeeper, said, "This has had a major impact. People who used to buy a seer now buy only a kilo. People can't afford it. When prices go up, sales go down."

Meanwhile, Da Afghanistan Bank has maintained that the afghani remains among the most stable currencies in the region due to cautious monetary management, Tolo News reported.

Hasibullah Nouri, spokesperson for the central bank, said, "Through the implementation of prudent and balanced monetary policies, increased exports, greater transparency, prevention of drug trafficking, and promotion of the afghani, the central bank has helped strengthen the stability of the national currency."

Despite these assurances, rising costs have intensified pressure on households, particularly low-income families struggling to meet daily needs.

Raz Mohammad, a Kabul resident, said, "Prices are very high, and poor people cannot afford them. A poor person cannot buy rice or cooking oil."

Another resident, Fahim, added, "Prices must be controlled. Purchasing power is low, and we are facing many difficulties."

The Chamber of Commerce and Investment, however, said price hikes cannot be attributed solely to currency movements and stressed that steps are being taken to stabilise markets, according to Tolo News.

Mohammad Wali Amini, acting head of the Chamber of Commerce and Investment, said, "Through the private sector, the Chamber of Commerce is making serious efforts to ensure sufficient availability of food and essential goods. These items are currently available in markets, and we will continue comprehensive efforts, in cooperation with the government, to help control prices."

Nevertheless, Tolo News noted that ongoing import and transit constraints continue to weigh heavily on vulnerable families who depend on daily wages, making basic survival increasingly difficult under current conditions.

- ANI

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Reader Comments

S
Sarah B
The central bank spokesperson talks about stability and stopping drug trade, which is good. But what about the people buying rice and oil? Monetary policy success isn't just a strong currency number, it's affordability for the poorest. They need to look at the ground reality, not just macro indicators.
P
Priyanka N
Very complex situation. India has also sent humanitarian aid like wheat. But if internal distribution and market mechanisms aren't working, aid alone can't solve it. The Chamber of Commerce says they're trying, but results are what matter. Hope stability returns soon for our Afghan brothers and sisters. 🙏
A
Aman W
"People who used to buy a seer now buy only a kilo." This line says it all. When basic food becomes a luxury, the social fabric is at risk. It's a reminder for all of us not to take our relative food security for granted.
M
Michael C
The report mentions import and transit constraints. That's likely the key. A stronger Afghani won't help if goods can't physically get into the country or move within it due to logistical or political hurdles. The focus needs to be on solving those bottlenecks first.
K
Kavya N
It's a basic demand-supply issue compounded by a struggling economy. The government and chamber need to act against profiteering if that's happening. My heart goes out to the daily wage workers mentioned. No one should have to choose between food and other essentials.

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